Community Bulletin Board

Whittier Main Project Current Activities

This Bulletin Board is designed to provide status and project updates to the citizens of Whittier. This requirement is listed in the Conditional Use Permit (“CUP”) 09-004. We welcome any questions you may have about the Project.

December 2016 Update

During 2011 and 2012, special interest groups had filed three cases to oppose the Matrix Whittier Main Drilling Project by filing against the City of Whittier and Los Angeles County related to the issuance of the Company’s development permit (Conditional Use Permit issued by the City of Whittier) for the Whittier Main Drilling Project. During 2012 and 2013 the cases were resolved via settlement. There are three settlement agreements, a master settlement between all parties, a confidential attorneys’ fees settlement agreement and a final settlement between the petitioners and the City of Whittier and Los Angeles County. Currently, appeal proceedings are in process regarding the settlements, with hearings scheduled in the latter part of 2016. Currently, the Company’s development plans for the Whittier Main Project are on hold until the Company and the City of Whittier agree upon a new lease.

As of December 31, 2015 there are no known environmental or other regulatory matters related to the Company’s operations that are reasonably expected to result in a material liability to the Company.

Feburary 2015 Update

Presently the project has been suspended since June 2013 as a result of a court injunction filed by Los Angeles County Superior Court. This injunction was based on the administrative requirements of the 20-year Los Angeles County Prop A District contract with the City of Whittier (“City”) which expires June 30, 2015. The court has ruled that the injunction lifts on that date. Los Angeles County is appealing that ruling which allows the project to move forward. Appeals on that matter are expected to be finalized by June 1, 2015.

Matrix fully expects the project to reinitiate in 2015. The court injunction, per current court ruling, will lift in June 2015. At that time our plan is to complete the work needed on the 2-acre test site located in the canyon that offsets the intersection of Mar Vista Drive and Catalina. We will drill the first of three test wells starting in late 2015.

It is acknowledged that several lawsuits involving the City of Whittier and other entities are still underway in the Los Angeles county Superior Court, and the Appeals Court. In our favor, the court has rejected the efforts by Los Angeles County to invalidate the Matrix Oil Lease issued by the City and the associated Certified CUP 09-004. A majority of the current cases will have rulings issued by the Judge by June 1. It is our opinion the court will continue to rule in our favor and the project will reinitiate in the second half of 2015.